Updated July 27, 2026. Quick answer (2026): Moving from Michigan to Mississippi in retirement, you stop paying Michigan income tax on retirement withdrawals. Four separate taxes change when you move — state income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Most comparisons only price the first one.
Michigan vs Mississippi: every tax that changes
| What changes | Michigan (leaving) | Mississippi (arriving) |
|---|---|---|
| State income tax | flat 4.25% | flat 4% for 2026 (final cut under prior schedule; HB 1 of 2025 continues: 3.75% in 2027, then -0.25%/yr to 3% by 2030, with growth triggers toward elimination). First $10,000 of taxable income exempt. |
| Social Security | not taxed (fully deducted) | not taxed (fully exempt) |
| Pension / 401(k) / IRA | TY2026 completes the 4-year phase-in under PA 4 of 2023 (HB 4001): ALL taxpayers regardless of birth year may deduct retirement and pension income (pensions, 401(k), IRA) up to the Tier-1 cap — approximately $67,610 single / $135,220 joint for 2026 (indexed annually; | Fully exempt: all qualified retirement income — pensions (public/private), 401(k)/403(b), IRA distributions taken per plan terms (normal retirement), annuities. |
| Estate tax | none | none |
| Inheritance tax | none | none |
| Probate fee model | reasonable-fee | reasonable-fee |
| Probate filing fee | $175 to commence probate proceedings, plus the value-based inventory fee under MCL 600.871 (e.g., $68.75 + 0.5% of the amount over $10,000 for estates $10k-$25k; continues scaling with estate value) — official Michigan Courts fee tables | varies by county |
| Small-estate limit | $53,000 for deaths in 2026 (official Michigan Treasury annual adjustment notice) — small estate petition/assignment under MCL 700.3982 (base raised $15,000 → $50,000 by 2024 PA, indexed per MCL 700.1210); transfer-by-affidavit (MCL 700.3983) uses the same indexed figure; up to $264,000 of real-estate debt deductible in the 2026 calculation. | $75,000 (net of liens/encumbrances) — successor’s affidavit for personal property, Miss. Code §91-7-322 (raised from $50,000 in 2020); 30-day wait. Bank-account affidavit and muniment-of-title procedures also exist for narrow cases. |
Every cell is quoted from our statute-cited 51-jurisdiction dataset. Download the full dataset as CSV.
1. What changes on your annual tax bill
Michigan taxes retirement withdrawals: TY2026 completes the 4-year phase-in under PA 4 of 2023 (HB 4001): ALL taxpayers regardless of birth year may deduct retirement and pension income (pensions, 401(k), IRA) up to the Tier-1 cap — approximately $67,610 single / $135,220 joint for 2026 (indexed annually; Mississippi does not. On a $100,000 annual withdrawal, the Michigan bill is whatever its flat 4.25% schedule produces; in Mississippi it is $0. Social Security is treated as follows — Michigan: not taxed (fully deducted) Mississippi: not taxed (fully exempt)
2. What changes at death: state estate tax
Neither state levies an estate tax. Michigan: none Mississippi: none Only the federal estate tax applies.
3. What changes at death: state inheritance tax
Neither state levies an inheritance tax. Michigan: none Mississippi: none
4. The one nobody prices: what probate costs your heirs
Michigan uses a reasonable-fee fee model (EPIC: reasonable compensation for PR and attorneys (MCL 700.3719); no compensation percentage schedule. NOTE: Michigan does levy a value-scaled probate court ‘inventory fee’ on every estate (MCL 600.871) — see filing fees.); Mississippi uses a reasonable-fee model (Court’s discretion: ‘such sum as the court deems proper’ considering estate value/worth and difficulty of duties, plus necessary expenses including a reasonable attorney’s fee (Miss. Code §91-7-299). The old 1%-7% statutory guideline was removed by amendment; no percentage schedule today.). Filing fees — Michigan: $175 to commence probate proceedings, plus the value-based inventory fee under MCL 600.871 (e.g., $68.75 + 0.5% of the amount over $10,000 for estates $10k-$25k; continues scaling with estate value) — official Michigan Courts fee tables Mississippi: varies by county
Full detail: probate cost by state and small-estate limits by state.
Will Michigan still tax me after I move to Mississippi?
Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.
- Domicile is a test, not a mailing address. A departing state can and does audit residency. Days present, voter registration, driver’s licence, where your doctors and advisers are, and where you keep what you value all count.
- A Roth conversion is taxed where you live in the year you convert. Sequencing a conversion after establishing the new domicile is often worth more than the annual saving — see how all 51 jurisdictions tax Roth conversions.
Full state detail
Every figure above is summarized. The complete statute-cited breakdown for each state: Michigan retirement taxes and Mississippi retirement taxes. To compare any other pair, start at the retirement tax relocation hub.
Talking this through
Relocation timing, Roth conversion sequencing and estate exposure interact, and the order you do them in changes the total. If you want a second opinion, understand what it should cost first — see our advisor cost guide. If a move is genuinely on the table, here is what to look for in an advisor who knows both Michigan and Mississippi.
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Cite or share this comparison
Suggested citation: Clear Money Guide, “Michigan to Mississippi Retirement Taxes (2026),” statute-cited; clearmoneyguide.com/michigan-to-mississippi-retirement-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- MCL 206.30
- PA 4 of 2023 (HB 4001)
- Michigan Treasury: Retirement and Pension Benefits guidance
- RAB 2026-1
- Miss. Code § 27-7-15(4)(k) (retirement income exclusion)
- HB 1 (2025), ‘Build Up Mississippi Act’
- MCL 700.3719
- MCL 700.3982
- MCL 700.1210
- MCL 600.871
- Miss. Code §91-7-299
- Miss. Code §91-7-322
Methodology: every figure is quoted from Clear Money Guide’s statute-cited 51-jurisdiction datasets, compiled from state statutes, session laws and revenue-department publications and adversarially verified in July 2026. Nothing here is personalized tax or legal advice. Confirm your own facts with a qualified adviser before you move.